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Australian Broker Call *Extra* Edition – May 19, 2021

Daily Market Reports | May 19 2021

This story features A2 MILK COMPANY LIMITED, and other companies. For more info SHARE ANALYSIS: A2M

An additional news report on the recommendation, valuation, forecast and opinion changes for ASX-listed equities.

In addition to The Australian Broker Call Report, which is published and updated daily (Mon-Fri), FNArena has now added The Australian Broker Call *Extra* Edition, featuring additional sources of research and insights on ASX-listed stocks, also enlarging the number of stocks that make up the FNArena universe.

One key difference is the *Extra* Edition will not be updated daily, but merely "regularly" depending on availability of suitable quality content. As such, the *Extra* Edition tries to build a bridge between daily updates via the Australian Broker Call Report and ad hoc news stories, that are not always timely for investors hungry for the next information update.

Investors using the *Extra* Edition as a source of input for their own share market research should thus take into account that information after publication may not be up to date, or yet awaiting another update by FNArena's team of journalists.

Similar to The Australian Broker Call Report, this *Extra* Edition includes concise but limited reviews of research recently published by Stockbrokers and other experts, which should be considered as information concerning likely market behaviour rather than advice on the securities mentioned. Do not act on the contents of this Report without first reading the important information included at the end of this Report.

The Australian Broker Call *Extra* Edition is a summary that has been prepared independently of the sources identified. Readers will check the full text of the recommendations and consult a Licenced Advisor before making any investment decision.

The copyright of this Report is owned by the publisher. Readers will not copy, forward or disseminate this Report to any other person. For more vital information about the sources included, see the bottom of this Report.

COMPANIES DISCUSSED IN THIS ISSUE

Click on a symbol for fast access.
The number next to the symbol represents the number of brokers covering it for this report -(if more than 1)

A2M   BIN   CWY   DOC   DOW   DTC (3)   EHL   GNG   IGO   IPD   MCL   NIC   NXS   OLL   PPS   RMS   RMY   S32 (2)   SBM   SES   SOM   VEA   VHT   WBC  

A2M    THE A2 MILK COMPANY LIMITED

Dairy – Overnight Price: $5.12

Jarden rates ((A2M)) as Downgraded to Underweight from Overweight (2) –

A marked decline in daigou transactions and associated cross-border sales is proving to be a key issue to The a2 Milk Company's post-covid recovery, notes Jarden. 

The broker points to a number of factors contributing to decline in the China infant formula market and daigou action, including a decrease in birth rates in China. 

Other factors include continuing border restrictions that have lead to decreased flow of international students and visitors that are pivotal to daigou channels, and a lifted presence of local infant formula brands in China. 

The company has issued three material downgrades during the 2021 financial year, with Jarden explaining a2 Milk has struggled to estimate the levels of excess inventory in daigou channels. 

Jarden predicts daigou activity to return once borders are reopened. In the meantime, the broker is waiting to see if a2 Milk will implement big changes or simply introduce a higher cost model. 

The rating is downgraded to Underweight and the target price decreases -33% to NZ$7.90 from NZ$11.40.

This report was published on April 27, 2021. 

Current Price is $5.12. Target price not assessed.
Current consensus price target is $6.32, suggesting upside of 23.4%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Jarden forecasts a full year FY21 EPS of 28.02 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.27.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 16.8, implying annual growth of N/A.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 30.5.

Forecast for FY22:

Jarden forecasts a full year FY22 EPS of 29.61 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 17.29.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 27.5, implying annual growth of 63.7%.
Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.
Current consensus EPS estimate suggests the PER is 18.6.

This company reports in NZD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: -0.3
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

BIN    BINGO INDUSTRIES LIMITED

Industrial Sector Contractors & Engineers – Overnight Price: $3.42

Goldman Sachs rates ((BIN)) as No Rating (-1) –

Bingo Industries has entered into a Scheme Implementation Deed with Macquarie Infrastructure & Real Assets and its managed funds (MIRA) to acquire 100% of the share capital of the company.

If the deal is approved, shareholders would be able to choose between a mixed cash and unlisted script alternative of $3.30 per share, of which $1.32 is cash and the remainder is unlisted script in Recycle & Resource Holdings Limited which would indirectly own 100% of Bingo's issued capital.

There is also a potential earn-out dividend of up to $0.80 per share, which would be paid if the company achieves underlying earnings (EBITDA) of $240m in FY24, or a pro-rata basis if underlying earnings is between $220-240m or $3.45 cash per Bingo share (less any dividend paid).

Bingo also intends to declare a fully franked special dividend of up to $0.117 per share prior to implementation of the Scheme, which would enable shareholders to receive additional benefits from franking credits of up to $0.05 per share.

With Bingo's operations looking well positioned for growth into FY22 as market volumes recover, Goldman Sachs expects pricing to pick up which the broker also expects to support a bounce back in earnings (EBITDA) margin to the company’s target of 30%.

Goldman Sachs has no rating on the stock.

This report was published on April 27, 2021.

Current Price is $3.42. Target price not assessed.
Current consensus price target is $3.44, suggesting upside of 0.7%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 dividend of 3.00 cents and EPS of 6.00 cents.
At the last closing share price the estimated dividend yield is 0.88%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 57.00.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 5.4, implying annual growth of -46.4%.
Current consensus DPS estimate is 3.4, implying a prospective dividend yield of 1.0%.
Current consensus EPS estimate suggests the PER is 63.3.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 4.00 cents and EPS of 9.00 cents.
At the last closing share price the estimated dividend yield is 1.17%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 38.00.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 9.9, implying annual growth of 83.3%.
Current consensus DPS estimate is 4.7, implying a prospective dividend yield of 1.4%.
Current consensus EPS estimate suggests the PER is 34.5.

Market Sentiment: 0.3
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

CWY    CLEANAWAY WASTE MANAGEMENT LIMITED

Industrial Sector Contractors & Engineers – Overnight Price: $2.81

Goldman Sachs rates ((CWY)) as Neutral (3) –

Following the previous acquisition announcement on 7 April, Cleanaway Waste Management has announced plans to acquire the Suez Sydney assets for $501m and has formally terminated the agreement to acquire Suez R&R in its entirety.

Comprising two landfills and five transfer stations, which generated $193m/$73m net sales/EBITDA in calendar year 2020, the Sydney assets are expected to deliver pro forma earnings per share (EPS) accretion to FY20.

Cleanaway expects the transaction to close shortly before completion of the takeover of Suez S.A. by Veolia, estimated to be in the second quarter of calendar year 2022. In the event that the Suez/Veolia transaction does not proceed by 31 December 2022, the prior agreed transaction between Cleanaway and Suez on the Australian R&R assets would be re-enlivened.

Management noted the company has secured new debt facilities to enable the transaction to be fully debt funded, pending board determination.

Goldman Sachs is Neutral, with the $2.47 price target also unchanged, and has not included any potential contribution in estimates or valuation at this stage.

This report was published on April 27, 2021.

Target price is $2.47 Current Price is $2.81 Difference: minus $0.34 (current price is over target).
If CWY meets the Goldman Sachs target it will return approximately minus 12% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $2.59, suggesting downside of -7.7%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 dividend of 4.80 cents and EPS of 8.00 cents.
At the last closing share price the estimated dividend yield is 1.71%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 35.13.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 8.0, implying annual growth of 45.2%.
Current consensus DPS estimate is 4.7, implying a prospective dividend yield of 1.7%.
Current consensus EPS estimate suggests the PER is 35.1.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 5.80 cents and EPS of 10.00 cents.
At the last closing share price the estimated dividend yield is 2.06%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 28.10.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 8.6, implying annual growth of 7.5%.
Current consensus DPS estimate is 5.0, implying a prospective dividend yield of 1.8%.
Current consensus EPS estimate suggests the PER is 32.7.

Market Sentiment: 0.4
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

DOC    DOCTOR CARE ANYWHERE GROUP PLC

Healthcare services – Overnight Price: $0.85

Bell Potter rates ((DOC)) as Buy (1) –

Doctor Care Anywhere has delivered its first quarter report for 2021 showing a 22% increase in consultations and a 16% increase in fees from GP services. 

Bell Potter notes the company set a new record for consultations in a single month in March and a 32% increase on the previous month, up to 34,000. 

Total revenue for the quarter was GBP6.4m, and was inclusive of GBP2.0m in non-recurring income, although underlying gross profit margin declined to 43.2%.

The broker notes an all-time high demand for general practitioners in the UK required for the covid-19 vaccine rollout is likely to have caused capacity constraints. 

The Buy rating and target price of $1.95 are retained. 

This report was published on April 27, 2021.

Target price is $1.95 Current Price is $0.85 Difference: $1.1
If DOC meets the Bell Potter target it will return approximately 129% (excluding dividends, fees and charges).
The company's fiscal year ends in December.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 9.19 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 9.25.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 5.95 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 14.29.

This company reports in GBP. All estimates have been converted into AUD by FNArena at present FX values.
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

DOW    DOWNER EDI LIMITED

Industrial Sector Contractors & Engineers – Overnight Price: $5.61

Goldman Sachs rates ((DOW)) as Buy (1) –

Commencing no earlier than 12 May 2021 and ending on 11 May 2022, Downer EDI has announced an on-market buy back of up to 70.1m shares, which based on last close ($5.32) will cost -$373m.

Commenting on the buyback, Goldman Sachs believes the company has significant capital return flexibility from ongoing portfolio transformation efforts.

After updating prior scenario analysis of announced transactions for the proposed Otraco sale, the broker would see proforma 1H21 gearing falling to 16.5%, well below the company’s target range.

Goldman Sachs estimates Downer has $409-$1,026m of balance sheet capacity should the company re-leverage to historical gearing targets post the proposed transactions (if completed).

Buy rating and price target of $6.00 remain unchanged.

This report was published on April 27, 2021.

Target price is $6.00 Current Price is $5.61 Difference: $0.39
If DOW meets the Goldman Sachs target it will return approximately 7% (excluding dividends, fees and charges).
Current consensus price target is $6.19, suggesting upside of 10.4%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 dividend of 23.70 cents and EPS of 47.00 cents.
At the last closing share price the estimated dividend yield is 4.22%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.94.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 30.1, implying annual growth of N/A.
Current consensus DPS estimate is 18.7, implying a prospective dividend yield of 3.3%.
Current consensus EPS estimate suggests the PER is 18.6.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 27.70 cents and EPS of 52.00 cents.
At the last closing share price the estimated dividend yield is 4.94%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.79.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 34.9, implying annual growth of 15.9%.
Current consensus DPS estimate is 23.8, implying a prospective dividend yield of 4.2%.
Current consensus EPS estimate suggests the PER is 16.1.

Market Sentiment: 0.8
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

DTC    DAMSTRA HOLDINGS LIMITED

Software & Services – Overnight Price: $0.83

Moelis rates ((DTC)) as Hold (3) –

A third quarter update from Damstra Holdings reported record revenue for March, despite total revenue for the quarter equaling the previous period at $6.9m. 

The update also showed annualised recurring revenue of $33m, which Moelis notes implies a third quarter exit run-rate of around $8.25m per quarter. 

Damstra will need to deliver at least $9.5 in revenue during the fourth quarter to meet its revised guidance of $28.5m-$30.5m for 2021. This implies a 15% increase on the third quarter recurring exit run-rate, which the broker feels should be achievable.  

The Hold rating is retained with a target price of $1.35. 

This report was published on April 28, 2021.

Target price is $1.35 Current Price is $0.83 Difference: $0.52
If DTC meets the Moelis target it will return approximately 63% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Moelis forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 2.20 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 37.73.

Forecast for FY22:

Moelis forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 0.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 207.50.

Market Sentiment: 0.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources


Shaw and Partners rates ((DTC)) as Buy (1) –

In the wake of third quarter results, Shaw and Partners notes March has accelerated and declares the outlook for the rest of the year has improved. Highlights were considered a company record for March revenues and stronger than expected cash receipts.

Also, earnings (EBITDA) at 20% of revenues equates to $4m year-to-date and synergies are ahead of schedule, observes the broker.
Management has guided for revenues of $28.5-$30.5m.

The Buy rating is maintained and the target price is lowered to $1.88 from $1.93. The analyst feels the result likely marks the end of consensus downgrades.

This report was published on April 18, 2021.

Target price is $1.88 Current Price is $0.83 Difference: $1.05
If DTC meets the Shaw and Partners target it will return approximately 127% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Shaw and Partners forecasts a full year FY21 dividend of 0.00 cents and EPS of 0.90 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 92.22.

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 dividend of 0.00 cents and EPS of 2.40 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 34.58.

Market Sentiment: 0.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources


Wilsons rates ((DTC)) as Overweight (1) –

Damsta Holdings has reported revenue of $6.9m for the third quarter, a 66% increase on the previous corresponding period. 

The acquisition of Vault in late 2020 has equated to $6m in realised synergies to date, up on the expected $4m, but Wilsons notes limited quantitative insights have been provided on the merger. 

Based on initial reports, the broker expects Damstra is well-positioned for 35% growth in operating revenue and 49% growth in earnings in 2022 as the Vault acquisition is digested. 

Wilsons' expectations for the company's 2021 revenue of $29.9m is towards the upper end of the provided $28.5m-$30.5m guidance. 

The Overweight rating is retained and the target price decreases to $1.66 from $1.71. 

This report was published on April 27, 2021.

Target price is $1.66 Current Price is $0.83 Difference: $0.83
If DTC meets the Wilsons target it will return approximately 100% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Wilsons forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 1.60 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 51.87.

Forecast for FY22:

Wilsons forecasts a full year FY22 dividend of 0.00 cents and EPS of 0.00 cents.

Market Sentiment: 0.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

EHL    EMECO HOLDINGS LTD

Mining Sector Contracting – Overnight Price: $0.89

Bell Potter rates ((EHL)) as Buy (1) –

Emeco Holdings has released guidance for 2021 operating earnings between $235m and $238m, slightly below Bell Potter's estimate. 

Despite impact on segment earnings from project commissioning issues in some early stage works, FY22 earnings are not expected to suffer as key projects, including the Kambalda Nickel Project and Great Western Project, ramp-up. 

Performance in the larger rental division has been in line with expectations, with positive momentum in the fourth quarter suggesting improved exit rate into 2022 and supporting growth expectations according to the broker. 

Emeco's -$14m spend on used underground equipment is a pull forward of planned future capital expenditure. The broker notes this opportunistic purchase will support incremental growth. 

Bell Potter retains its Buy rating with the target price decreasing to $1.50 from $1.58.

This report was published on April 27, 2021.

Target price is $1.50 Current Price is $0.89 Difference: $0.61
If EHL meets the Bell Potter target it will return approximately 69% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 0.00 cents and EPS of 12.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 7.42.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 0.00 cents and EPS of 13.60 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 6.54.

Market Sentiment: 1.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

GNG    GR ENGINEERING SERVICES LIMITED

Mining Sector Contracting – Overnight Price: $1.28

Bell Potter rates ((GNG)) as Buy (1) –

GR Engineering has announced it has entered into an agreement to acquire Mipac Holdings for $21.4m, with $14.5m payable on completion. The remainder is to be paid by October 22 subject to Mipac achieving earnings targets. 

Mipac Holdings, a global leader in control systems engineering, automation and technology services, is forecasting revenue for 2021 of $25m and similar revenue for 2022. 

Mipac's standalone solutions are expected to help secure projects with Tier 1 clients who require more sophisticated controls, according to Bell Potter. 

The Buy rating is retained and the target price is increased to $1.50 from $1.45.

This report was published on April 28, 2021.

Target price is $1.50 Current Price is $1.28 Difference: $0.22
If GNG meets the Bell Potter target it will return approximately 17% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 10.00 cents and EPS of 11.20 cents.
At the last closing share price the estimated dividend yield is 7.81%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.43.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 10.00 cents and EPS of 14.00 cents.
At the last closing share price the estimated dividend yield is 7.81%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 9.14.

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

IGO    IGO LIMITED

Nickel – Overnight Price: $7.63

Canaccord Genuity rates ((IGO)) as Buy (1) –

IGO has recently entered into a binding agreement to sell Tropicana for $903m.

Third quarter nickel production was largely in-line with Canaccord Genuity's expectations and copper production beat estimates by 10%. Management expects Nova to have a stronger June quarter, with cash costs benefiting from by-product credits.

As a result, guidance for costs at Nova falls to $1.80-2.10/lb from $2.40-2.80/lb. Earnings (EBITDA) of $335m year-to-date means that $92m is needed in the June quarter to meet consensus of $427m. The Buy is maintained and the target increases to $8.75 from $8.50.

This report was published on April 28, 2021.

Target price is $8.75 Current Price is $7.63 Difference: $1.12
If IGO meets the Canaccord Genuity target it will return approximately 15% (excluding dividends, fees and charges).
Current consensus price target is $6.70, suggesting downside of -12.2%(ex-dividends)

Forecast for FY21:

Current consensus EPS estimate is 22.7, implying annual growth of -12.7%.
Current consensus DPS estimate is 8.0, implying a prospective dividend yield of 1.0%.
Current consensus EPS estimate suggests the PER is 33.6.

Forecast for FY22:

Current consensus EPS estimate is 21.5, implying annual growth of -5.3%.
Current consensus DPS estimate is 11.6, implying a prospective dividend yield of 1.5%.
Current consensus EPS estimate suggests the PER is 35.5.

Market Sentiment: 0.2
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

IPD    IMPEDIMED LIMITED

Medical Equipment & Devices – Overnight Price: $0.13

Canaccord Genuity rates ((IPD)) as Buy (1) –

While Texas storms and covid slowed device sales, ImpediMed's quarterly growth continued in March, explains Canaccord Genuity. The Buy rating is maintained with a target price of $0.23.

The gap between the broker's current expectations for the June quarter and what appears likely requires a downgrade in revenue estimates of circa -16.5%. However, by the end of the quarter, it's estimated momentum will justify retaining current estimates for FY22.

Likely catalysts in the June quarter are the publication of the PREVENT trial paper and the potential FDA clearance for removal of SOZO contraindications, details the analyst.

The report was published on April 29, 2021.

Target price is $0.23 Current Price is $0.13 Difference: $0.1
If IPD meets the Canaccord Genuity target it will return approximately 77% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Canaccord Genuity forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 1.90 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 6.84.

Forecast for FY22:

Canaccord Genuity forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 1.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 13.00.

Market Sentiment: 1.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

MCL    MIGHTY CRAFT LIMITED

Overnight Price: $0.34

Canaccord Genuity rates ((MCL)) as Speculative Buy (1) –

Due to impressive growth from the spirits businesses (up 193%), and strong beer growth (up 74%), Mighty Craft posted a solid March quarter cash flow.

Having delivered demonstrably stronger-than-industry growth, management confirmed a realistic pathway to break-even earnings (EBITDA) in the second half FY22.

A recovery in the venues business ($4.5m in 3Q21 sales, +151% vs pcp) was also delivered, with brand-specific venues returning to pre-covid levels and the two branded Mighty venues improving to 70% of normal trading levels.

The launch of three Seven Seasons spirits products nationally and the relaunch of the Kangaroo Island Spirits brand are two notable fourth quarter 2021 strategic initiatives Canaccord Genuity believes hold value as potential catalysts over the coming period.

On the back of a strong quarter and an increasing line of sight to management’s stated target of operating profitability in 2H22, the broker retains a Speculative Buy rating and a $0.56 price target.

This report was released April 28, 2021. Canaccord Genuity initiated coverage on April 22, 2021, one week prior.

Target price is $0.56 Current Price is $0.34 Difference: $0.22
If MCL meets the Canaccord Genuity target it will return approximately 65% (excluding dividends, fees and charges).

Forecast for FY21:

Canaccord Genuity forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 7.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 4.86.

Forecast for FY22:

Canaccord Genuity forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 3.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 11.33.

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

NIC    NICKEL MINES LIMITED

Nickel – Overnight Price: $1.02

Shaw and Partners rates ((NIC)) as Sell (5) –

The first quarter was impacted by lower production (-13%), lower nickel pig iron (NPI) grade and rising costs (up15%). As a result, earnings (EBITDA) were lower by -29% quarter-on-quarter, and Shaw and Partners downgrades the price target to $1.01 from $1.26.

Production and costs were adversely affected by Tsingshan, which has decided to produce a lower grade NPI to optimise its blend for stainless steel production. This lowers contained nickel production for Nickel Mines, explains the broker.

Separately, the company is acquiring an 80% stake in the Angel Nickel Project at Weda Bay in Indonesia, in partnership with Tsingshan, for US$560m.

The analyst lowers FY21 EPS forecasts by -17%.

This report was published on April 18, 2021.

Target price is $1.01 Current Price is $1.02 Difference: minus $0.01 (current price is over target).
If NIC meets the Shaw and Partners target it will return approximately minus 1% (excluding dividends, fees and charges – negative figures indicate an expected loss).
Current consensus price target is $1.40, suggesting upside of 37.3%(ex-dividends)
The company's fiscal year ends in December.

Forecast for FY21:

Shaw and Partners forecasts a full year FY21 dividend of 7.06 cents and EPS of 10.18 cents.
At the last closing share price the estimated dividend yield is 6.92%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.02.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 7.1, implying annual growth of N/A.
Current consensus DPS estimate is 3.3, implying a prospective dividend yield of 3.2%.
Current consensus EPS estimate suggests the PER is 14.4.

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 dividend of 12.22 cents and EPS of 13.44 cents.
At the last closing share price the estimated dividend yield is 11.98%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 7.59.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 6.9, implying annual growth of -2.8%.
Current consensus DPS estimate is 3.3, implying a prospective dividend yield of 3.2%.
Current consensus EPS estimate suggests the PER is 14.8.

This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.7
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

NXS    NEXT SCIENCE LIMITED

Pharmaceuticals & Biotech/Lifesciences – Overnight Price: $1.70

Bell Potter rates ((NXS)) as Speculative Hold (3) –

Next Science has announced the approval of the XPerience surgical wash as a medical device under the FDA's 510k pathway. Successful initial sales and clinical trial results, which are expected to begin immediately, could trigger a re-rate. 

Bell Potter notes the company will undertake 3 clinical trials in the orthopaedic and colorectal spaces, equating to around 2,000 patients but expects the product to achieve broader adoption following positive experiences in the trial stage. The broker predicts XPerience could be suitable for around 17m procedures in the US annually. 

The company has established relationships with 300 third party sales reps to establish widespread product exposure, with the broker assessing an initial addressable market of US$1.5bn. 

The Speculative Hold rating is retained and the target price increases to $1.70 from $1.51.

This report was published on April 27, 2021.

Target price is $1.70 Current Price is $1.70 Difference: $0
If NXS meets the Bell Potter target it will return approximately 0% (excluding dividends, fees and charges).
The company's fiscal year ends in December.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 6.24 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 27.23.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 4.07 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 41.75.

This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

OLL    OPENLEARNING LTD

Education & Tuition – Overnight Price: $0.17

Canaccord Genuity rates ((OLL)) as Buy (1) –

Following the recently announced 28% March quarter-on-quarter (QoQ) increase in platform revenue and 80% QoQ increase in cash receipts, OpenLearning has signed a platform SaaS agreement with Afterpay.

Commenting on what it sees as an unsurprising development, Canaccord Genuity notes SaaS fees will be payable based on the number of learners in Afterpay’s courses. No minimum fees are payable, however enterprise customers with over 5,000 learners typically pay in excess of $30,000 p.a. with this figure scaling higher relative to the number of learners, states the broker.

Cannacord believes OpenLearning is well placed to capitalise on demand growth for online delivery of education and job reskilling. The broker also believes new partnership agreements with universities, education providers and corporates present as potential catalysts over the coming three to six months.

Speculative buy rating and $0.43 target price retained.

This report was published on April 28, 2021.

Target price is $0.43 Current Price is $0.17 Difference: $0.26
If OLL meets the Canaccord Genuity target it will return approximately 153% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Canaccord Genuity forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 3.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 5.67.

Forecast for FY22:

Canaccord Genuity forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 2.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 8.50.

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

PPS    PRAEMIUM LIMITED

Wealth Management & Investments – Overnight Price: $0.78

Canaccord Genuity rates ((PPS)) as Buy (1) –

Praemium reported third quarter 2021 platform funds under advice (FUA) of $21.2bn (2Q21: $20.4bn), which represents an uplift of $0.9bn and places the company on track to meet Canaccord Genuity's forecast for FY21 platform FUA of $21.7m.

Key March quarter highlights included gross inflows of $1.2bn converted to net inflows of $0.4bn, and excluding the ANZ outflow of -$0.4bn, represented a modest 36% conversion of gross inflows to net inflows for the period.

Commenting on the result, Canaccord noted VMA Administration Service (VMAAS) FUA increased to $16.7bn, up 19%, and the number of client portfolios continues to grow as reflected by higher VMAAS-related FUA.

Canaccord believes the 3Q21 update places Praemium well on track to meet the broker's FY21 platform FUA targets, and in turn meet  forecasts for FY21 earnings (EBITDA) of $16.1m and earnings per share (EPS) of 1.7cps respectively.

Buy rating and target price of $0.97 both unchanged.

This report was published on April 28, 2021.

Target price is $0.97 Current Price is $0.78 Difference: $0.19
If PPS meets the Canaccord Genuity target it will return approximately 24% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Canaccord Genuity forecasts a full year FY21 dividend of 0.00 cents and EPS of 2.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 39.00.

Forecast for FY22:

Canaccord Genuity forecasts a full year FY22 dividend of 0.00 cents and EPS of 3.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 26.00.

Market Sentiment: 1.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

RMS    RAMELIUS RESOURCES LIMITED

Gold & Silver – Overnight Price: $1.90

Canaccord Genuity rates ((RMS)) as Buy (1) –

Ramelius Resources group production for the March quarter of 66koz at an AISC of $1,370/oz were within quarterly guidance of 65-70koz (at an AISC of $1,290-1,390/oz) and in line with Cannacord Genuity's forecast.

Cash and gold on hand increased by $9.1m to $230.6m (net cash $222.5m) after income tax payments for FY20 of $20.3m and the purchase of minority interest in Tampia and farmland for $9.3m (all pre-released).

FY21 production guidance upgraded slightly to 275-280koz (previously 260-280koz) at an AISC of $1,280-1330/oz (Previous $1,230-1,330/oz) versus Cannacord's 270koz at AISC $1,307/oz.

Buy and price target of $2 both retained.

This report was published on April 28, 2021.

Target price is $2.00 Current Price is $1.90 Difference: $0.1
If RMS meets the Canaccord Genuity target it will return approximately 5% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Canaccord Genuity forecasts a full year FY21 dividend of 4.00 cents and EPS of 16.00 cents.
At the last closing share price the estimated dividend yield is 2.11%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 11.88.

Forecast for FY22:

Canaccord Genuity forecasts a full year FY22 dividend of 4.00 cents and EPS of 18.00 cents.
At the last closing share price the estimated dividend yield is 2.11%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 10.56.

Market Sentiment: 1.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

RMY    RMA GLOBAL LIMITED

Real Estate – Overnight Price: $0.26

Bell Potter rates ((RMY)) as Speculative Buy (1) –

RMA Global has delivered strong third quarter results according to Bell Potter, with recurring revenue growth of 17.1% quarter-on-quarter to $2.97m. 

The broker notes this growth was largely driven by an increase in Australian and New Zealand subscription revenues, up 4% and 31% quarter-on-quarter respectively, and a record quarter for the company's Promoter product. 

The company showed progress in the US during a seasonally quiet period, with claimed profiles growing 148% year-on-year. The broker expects further growth in claimed profiles and subscription growth in the fourth quarter peak season. 

The Speculative Buy rating and target price of $0.38 are retained. 

This report was published on April 28, 2021.

Target price is $0.38 Current Price is $0.26 Difference: $0.12
If RMY meets the Bell Potter target it will return approximately 46% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 1.80 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 14.44.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 1.50 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 17.33.

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

S32    SOUTH32 LIMITED

Mining – Overnight Price: $3.03

Goldman Sachs rates ((S32)) as Buy (1) –

While South32's third quarter 2021 result was mixed, with production of alumina and thermal coal down, and met coal and silver up, net cash increased to US$517m by the quarter's end, and Goldman Sachs forecast a further increase to US$866m by the end of FY21.

The broker thinks South32 could further increase returns to shareholders through extending the share buyback program and via special dividends if the divestment of South Africa Energy Coal (SAEC) goes ahead.

Goldman Sachs has decreased FY21 earnings per share (EPS) by -1% with lower volumes from SA Energy Coal mostly offset by the increase in manganese and zinc/silver guidance.

The broker's FY22 and FY23 EPS forecasts increase by 6% and 7% on higher forecasts for manganese, zinc/silver, and nickel production.

Goldman Sachs is forecasting a free cash flow (FCF) yield of around 12% over the next two years, driven by higher volumes, lower capex and higher base metal, met coal and manganese prices.

Buy rating and target price of $3.40 remain unchanged.

This report was issued 27 April, 2021.

Target price is $3.40 Current Price is $3.03 Difference: $0.37
If S32 meets the Goldman Sachs target it will return approximately 12% (excluding dividends, fees and charges).
Current consensus price target is $3.19, suggesting upside of 5.1%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 dividend of 8.82 cents and EPS of 16.15 cents.
At the last closing share price the estimated dividend yield is 2.91%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 18.76.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 13.6, implying annual growth of N/A.
Current consensus DPS estimate is 6.0, implying a prospective dividend yield of 2.0%.
Current consensus EPS estimate suggests the PER is 22.3.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 23.48 cents and EPS of 39.23 cents.
At the last closing share price the estimated dividend yield is 7.75%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 7.72.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 20.6, implying annual growth of 51.5%.
Current consensus DPS estimate is 9.3, implying a prospective dividend yield of 3.1%.
Current consensus EPS estimate suggests the PER is 14.7.

This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.6
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources


Shaw and Partners rates ((S32)) as Buy (1) –

Shaw and Partners observes a strong operating performance across the portfolio during the third quarter combined with improving prices for most commodities. As a result, the net cash position increased by US$242m.

There was record production from the Brazil alumina unit and Worsley Alumina in WA is on-track to hit nameplate capacity, explains the broker. Manganese hit a year-to-date record in the Australian business and FY guidance was lifted for the South African business.

The analyst upgrades upgrade earnings, valuation and the target price to $3.30 from $3.10.

This report was published on April 18, 2021.

Target price is $3.30 Current Price is $3.03 Difference: $0.27
If S32 meets the Shaw and Partners target it will return approximately 9% (excluding dividends, fees and charges).
Current consensus price target is $3.19, suggesting upside of 5.1%(ex-dividends)
The company's fiscal year ends in June.

Forecast for FY21:

Shaw and Partners forecasts a full year FY21 dividend of 6.52 cents and EPS of 12.08 cents.
At the last closing share price the estimated dividend yield is 2.15%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 25.08.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 13.6, implying annual growth of N/A.
Current consensus DPS estimate is 6.0, implying a prospective dividend yield of 2.0%.
Current consensus EPS estimate suggests the PER is 22.3.

Forecast for FY22:

Shaw and Partners forecasts a full year FY22 dividend of 12.08 cents and EPS of 23.76 cents.
At the last closing share price the estimated dividend yield is 3.99%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 12.76.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 20.6, implying annual growth of 51.5%.
Current consensus DPS estimate is 9.3, implying a prospective dividend yield of 3.1%.
Current consensus EPS estimate suggests the PER is 14.7.

This company reports in USD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.6
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

SBM    ST BARBARA LIMITED

Gold & Silver – Overnight Price: $1.87

Canaccord Genuity rates ((SBM)) as Buy (1) –

St Barbara's March quarter production was lower across all operations, with gold sales lower versus Cannacord Genuity at 71koz, and reported cash flow of $41m below the broker's estimated $66m, resulting in net debt of $2m.

Group guidance has been revised to 370-380koz (from 370-410koz), with bottom end of AISC guidance range lifted to $1,440-1,520/oz (from $1,360-1,510/oz), this compares to Cannacord's FY21 estimates of 368koz at $1,430/oz

At first look, the broker notes St Barbara will need to deliver a 51% quarter-on-quarter (QoQ) production improvement to hit guidance, with Leonora needing to deliver a 58% lift in the June quarter.

While improvements in operating performance are evident, Cannacord believes achieving (revised) guidance now looks a stretch noting potential for disruption on contractor changeover.

While Cannacord doesn't believe the valuation looks stretched, the broker suspects guidance risk and approvals uncertainty (at Simberi and Atlantic) will be an overhang.

Buy and target price of $3.00 remain.

The report was issued on April, 28 2021

Target price is $3.00 Current Price is $1.87 Difference: $1.13
If SBM meets the Canaccord Genuity target it will return approximately 60% (excluding dividends, fees and charges).
Current consensus price target is $2.56, suggesting upside of 36.9%(ex-dividends)

Forecast for FY21:

Current consensus EPS estimate is 11.8, implying annual growth of -35.6%.
Current consensus DPS estimate is 5.4, implying a prospective dividend yield of 2.9%.
Current consensus EPS estimate suggests the PER is 15.8.

Forecast for FY22:

Current consensus EPS estimate is 16.6, implying annual growth of 40.7%.
Current consensus DPS estimate is 4.5, implying a prospective dividend yield of 2.4%.
Current consensus EPS estimate suggests the PER is 11.3.

Market Sentiment: 0.6
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

SES    SECOS GROUP LTD

Paper & Packaging – Overnight Price: $0.24

Canaccord Genuity rates ((SES)) as Buy (1) –

While Secos Group's third quarter result was a touch below Canaccord Genuity's expectations, the quarterly demonstrated 33% group revenue growth on the previous period and 75% growth in bioplastics revenue.

Management flagged fourth quarter 2021 revenue to be in excess of $8m sales, noting that demand across all bioplastics segments remains strong.

Once the production capacity Secos has been investing in at both its Chinese and Malaysian facilities is complete, management believes this allows for $13-15m of sales capacity per quarter. This implies annual sales of $52-$60m p.a. of sales capacity, which compares to Canaccord's FY22 forecast of $47.3m.

Secos noted it continues to assess further capacity expansion opportunities, both brownfield and greenfield.

Cannacord believes Secos remains in a strong position to continue to capitalise on the shift away from single-use plastic with the product, capacity and balance sheet to fund growth. 

If successful, the broker believes the transition from blown film production to cast film production could mark a step-change in sales growth for the bio film division due to vast capacity and efficiency improvements.

Cannacord has tempered estimates for traditional product sales to reflect the miss but has maintained  estimates for Bioplastics given the outlook provided by management. As a result, the broker's FY21-FY23 revenue estimates fall by -3.6%, -1.8% and -1.0% respectively.

Buy rating unchanged with the target decreasing to $0.37 from $0.38

This report was published on April 28, 2021.

Target price is $0.37 Current Price is $0.24 Difference: $0.13
If SES meets the Canaccord Genuity target it will return approximately 54% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY21:

Canaccord Genuity forecasts a full year FY21 dividend of 0.00 cents and EPS of 0.00 cents.

Forecast for FY22:

Canaccord Genuity forecasts a full year FY22 dividend of 0.00 cents and EPS of 1.00 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 24.00.

All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

SOM    SOMNOMED LIMITED

Medical Equipment & Devices – Overnight Price: $2.12

Wilsons rates ((SOM)) as Market Weight (3) –

SomnoMed has delivered $15.7m in revenue during the third quarter despite continued covid-19 impact. Revenue was down -8% quarter-on-quarter but in line with Wilsons' forecast.

With North American revenue down due to continued covid-impact and Europe revenue flat, Asia Pacific was the growth market for the third quarter. Asia Pacific was up 24% on the previous corresponding period. 

Wilsons notes it's forecast of $34.1m for the second half of 2021 appears achievable. SomnoMed has also flagged new R&D projects later this year but is yet to provide details. The broker expects projects to focus on improved treatment adherence and lower cost of care. 

The Market Weight rating and target price of $1.65 are unchanged.

This report was published on April 28, 2021.

Target price is $1.65 Current Price is $2.12 Difference: minus $0.47 (current price is over target).
If SOM meets the Wilsons target it will return approximately minus 22% (excluding dividends, fees and charges – negative figures indicate an expected loss).
The company's fiscal year ends in June.

Forecast for FY21:

Wilsons forecasts a full year FY21 dividend of 0.00 cents and EPS of 2.90 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 73.10.

Forecast for FY22:

Wilsons forecasts a full year FY22 dividend of 0.00 cents and EPS of 3.80 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 55.79.

Market Sentiment: 1.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

VEA    VIVA ENERGY GROUP LIMITED

Crude Oil – Overnight Price: $2.08

Goldman Sachs rates ((VEA)) as Buy (1) –

While Viva Energy Group's first quarter 2021 operating result was broadly in line with Goldman Sachs' recovery expectation, the broker believes the company remains well positioned to leverage improving cash returns from the continued recovery in demand outlook through 2021 (back towards pre-covid levels).

The broker believes refining subsidies and emerging synergies in Geelong operations, post Altona’s closure, adds to upside linked to the covid recovery and lowers the risk profile of the portfolio over the medium term.

In Goldman Sachs' view a $100m buyback remains likely by the end of the first half 2021.

Buy rating and target price of $2.40 both maintained.

This report was released on April 27, 2021.

Target price is $2.40 Current Price is $2.08 Difference: $0.32
If VEA meets the Goldman Sachs target it will return approximately 15% (excluding dividends, fees and charges).
Current consensus price target is $2.22, suggesting upside of 6.7%(ex-dividends)
The company's fiscal year ends in December.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 dividend of 5.60 cents and EPS of 10.00 cents.
At the last closing share price the estimated dividend yield is 2.69%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 20.80.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 5.5, implying annual growth of N/A.
Current consensus DPS estimate is 4.7, implying a prospective dividend yield of 2.3%.
Current consensus EPS estimate suggests the PER is 37.8.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 8.40 cents and EPS of 14.00 cents.
At the last closing share price the estimated dividend yield is 4.04%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.86.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 11.2, implying annual growth of 103.6%.
Current consensus DPS estimate is 7.3, implying a prospective dividend yield of 3.5%.
Current consensus EPS estimate suggests the PER is 18.6.

Market Sentiment: 0.6
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

VHT    VOLPARA HEALTH TECHNOLOGIES LIMITED

Medical Equipment & Devices – Overnight Price: $1.25

Bell Potter rates ((VHT)) as Buy (1) –

Bell Potter predicts Volpara Health Technology is set to become the leading provider of innovative tools for the management of breast cancer risk over the next few years.

Volpara Health's technology platform is the only one offering a holistic approach to personalised breast cancer management, states the broker.

The acquisition of CRA Health helped drive annual recurring revenue to US$18.6, observes the broker, adding US$4m in addition to 8.1%, or $US1.1m, organic growth in annual recurring revenue. 

Average revenue per woman for new business was also reported to have increased during the fourth quarter. An increase to US$2.50 average revenue per user from US$1.40 during the quarter was attributed to to the CRA Health acquisition. 

The Buy rating is retained and the target price decreases to $1.80 from $2.05. 

This report was published on April 27, 2021.

Target price is $1.80 Current Price is $1.25 Difference: $0.55
If VHT meets the Bell Potter target it will return approximately 44% (excluding dividends, fees and charges).
The company's fiscal year ends in March.

Forecast for FY21:

Bell Potter forecasts a full year FY21 dividend of 0.00 cents and EPS of minus 5.49 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 22.76.

Forecast for FY22:

Bell Potter forecasts a full year FY22 dividend of 0.00 cents and EPS of minus 4.38 cents.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is minus 28.56.

This company reports in NZD. All estimates have been converted into AUD by FNArena at present FX values.
Market Sentiment: 0.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

WBC    WESTPAC BANKING CORPORATION

Banks – Overnight Price: $25.46

Goldman Sachs rates ((WBC)) as Buy (1) –

Due primarily to Westpac Banking's disclosure (on 26 April 2021) of notable items that will impact its first half FY21 result, Goldman Sachs has amended FY21, FY22, and FY23 earnings per share (EPS) forecasts by -4.2%, -3.1%, and -3.7% respectively.

While -$212m of the -$282m in 1H21 notable items were announced at Westpac's 1Q21 trading update, notable additional items include: additional provisions for customer refunds, payments, associated costs, and litigation provisions of -$220m, plus a write-down of capitalised software and other intangibles of -$115m. 

Then there are costs associated with ending the group’s relationship with IOOF Holdings ((IFL)) (-$56m, plus a write-down of goodwill relating to Lenders Mortgage Insurance of -$84m). 

Finally, there's an accounting loss on sale in Westpac Pacific, along with transaction costs and payments associated with divestments, (-$113m).

The broker does not view these changes as material, with the Buy remaining, and the target price increasing to $26.67 from $25.94.

The report was issued April 27, 2021

Target price is $26.67 Current Price is $25.46 Difference: $1.21
If WBC meets the Goldman Sachs target it will return approximately 5% (excluding dividends, fees and charges).
Current consensus price target is $28.49, suggesting upside of 11.9%(ex-dividends)
The company's fiscal year ends in September.

Forecast for FY21:

Goldman Sachs forecasts a full year FY21 dividend of 112.00 cents and EPS of 169.00 cents.
At the last closing share price the estimated dividend yield is 4.40%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 15.07.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 176.1, implying annual growth of 176.3%.
Current consensus DPS estimate is 116.0, implying a prospective dividend yield of 4.6%.
Current consensus EPS estimate suggests the PER is 14.5.

Forecast for FY22:

Goldman Sachs forecasts a full year FY22 dividend of 131.00 cents and EPS of 178.00 cents.
At the last closing share price the estimated dividend yield is 5.15%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 14.30.

How do these forecasts compare to market consensus projections?

Current consensus EPS estimate is 180.3, implying annual growth of 2.4%.
Current consensus DPS estimate is 124.3, implying a prospective dividend yield of 4.9%.
Current consensus EPS estimate suggests the PER is 14.1.

Market Sentiment: 0.7
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources


Disclaimer:
The content of this information does in no way reflect the opinions of FNArena, or of its journalists. In fact we don't have any opinion about the stock market, its value, future direction or individual shares. FNArena solely reports about what the main experts in the market note, believe and comment on. By doing so we believe we provide intelligent investors with a valuable tool that helps them in making up their own minds, reading market trends and getting a feel for what is happening beneath the surface. This document is provided for informational purposes only. It does not constitute an offer to sell or a solicitation to buy any security or other financial instrument. FNArena employs very experienced journalists who base their work on information believed to be reliable and accurate, though no guarantee is given that the daily report is accurate or complete. Investors should contact their personal adviser before making any investment decision.

As part of emerging new trends overseas, The Australian Broker Call *Extra* Edition also includes providers of sponsored research. Readers should bear in mind, sponsored research, while not necessarily of lower quality, has the embedded complication that the company that is the subject of the research has paid for this research. Providers of sponsored research that can potentially be included in this Report are Breakaway Research, Edison Investment Research, Independent Investment Research, NDF Research, Pitt Street Research, and TMT Analytics.

Decisions about inclusions in this Report are made independently of the providers of stock market research and at full discretion of the team of journalists responsible for content at FNArena. Inclusion does not equal endorsement, in any way, shape or form. This Report is provided for informational purposes only.

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CHARTS

A2M BIN CWY DOC DOW DTC EHL GNG IFL IGO IPD MCL NIC NXS OLL PPS RMS RMY S32 SBM SES SOM VEA VHT WBC

For more info SHARE ANALYSIS: A2M - A2 MILK COMPANY LIMITED

For more info SHARE ANALYSIS: BIN - BINGO INDUSTRIES LIMITED

For more info SHARE ANALYSIS: CWY - CLEANAWAY WASTE MANAGEMENT LIMITED

For more info SHARE ANALYSIS: DOC - DOCTOR CARE ANYWHERE GROUP PLC

For more info SHARE ANALYSIS: DOW - DOWNER EDI LIMITED

For more info SHARE ANALYSIS: DTC - DAMSTRA HOLDINGS LIMITED

For more info SHARE ANALYSIS: EHL - EMECO HOLDINGS LIMITED

For more info SHARE ANALYSIS: GNG - GR ENGINEERING SERVICES LIMITED

For more info SHARE ANALYSIS: IFL - INSIGNIA FINANCIAL LIMITED

For more info SHARE ANALYSIS: IGO - IGO LIMITED

For more info SHARE ANALYSIS: IPD - IMPEDIMED LIMITED

For more info SHARE ANALYSIS: MCL - MIGHTY CRAFT LIMITED

For more info SHARE ANALYSIS: NIC - NICKEL MINES LIMITED

For more info SHARE ANALYSIS: NXS - NEXT SCIENCE LIMITED

For more info SHARE ANALYSIS: OLL - OPENLEARNING LIMITED

For more info SHARE ANALYSIS: PPS - PRAEMIUM LIMITED

For more info SHARE ANALYSIS: RMS - RAMELIUS RESOURCES LIMITED

For more info SHARE ANALYSIS: RMY - RMA GLOBAL LIMITED

For more info SHARE ANALYSIS: S32 - SOUTH32 LIMITED

For more info SHARE ANALYSIS: SBM - ST. BARBARA LIMITED

For more info SHARE ANALYSIS: SES - SECOS GROUP LIMITED

For more info SHARE ANALYSIS: SOM - SOMNOMED LIMITED

For more info SHARE ANALYSIS: VEA - VIVA ENERGY GROUP LIMITED

For more info SHARE ANALYSIS: VHT - VOLPARA HEALTH TECHNOLOGIES LIMITED

For more info SHARE ANALYSIS: WBC - WESTPAC BANKING CORPORATION